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US House To Hold Hearing On Oil Export Ban

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A House of Representatives panel will hold a hearing on Dec. 11 to explore whether a decades-old law that prohibits the export of crude oil makes sense in an era of domestic energy abundance. The House subcommittee on energy and power, chaired by Representative Ed Whitfield, will hone in on the 1975 Energy Policy and Conservation Act, drafted in response to the 1973 oil crisis.

The law prohibited the export of most crude oil, created the Strategic Petroleum Reserve and Corporate Average Fuel Economy rules for cars and trucks, also known as CAFE standards. “We need to take a comprehensive look at where we came from, where we are today, and where we want to go from here,” Whitfield said in a release. The debate over whether Washington should lift its nearly 40-year crude oil export ban will come sharply into focus in January, when Republicans take over leadership of both the House and Senate.

Oil exports champion Senator Lisa Murkowski will take over as chairman of the Senate energy committee. In the House equivalent, Chairman Fred Upton – who will retain the gavel – has said he has not yet made up his mind on the exports question, but senior committee member Congressman Joe Barton has voiced his support for lifting the ban. Energy Information Administration chief Adam Sieminski will testify at the hearing along with a panel of other experts, who will be named at a later date. 

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AUV SeaBED Maps Antarctic Sea Ice

The first detailed, high-resolution 3-D maps of Antarctic sea ice have been developed using an underwater robot.

Scientists from the UK, USA and Australia say the new technology provides accurate ice thickness measurements from areas that were previously too difficult to access.

The results, published this week in the journal Nature Geoscience, step up the pace of research in the polar regions aimed at understanding the dramatic sea ice changes in the context of climate change.

Scientists use a range of technologies and techniques to measure sea ice thickness. Satellite observations can measure large-scale thickness from space, but interpreting the data accurately can be difficult due to snow cover on the ice. Measurements made on the sea ice by drilling holes, together with visual observations from ships are critical for building a more complete picture, but difficulties in getting access to thicker areas of sea ice leaves gaps in the data. Now, with the Autonomous Underwater Vehicle (AUV) known as SeaBED, scientists have an invaluable new tool to fill this gap.

While most oceanographic survey instruments look down at the seafloor, SeaBED was fitted with an upward-looking sonar in order to measure and map the underside of sea ice floes. The AUV operated at a depth of 20 to 30 meters and was driven in a lawnmower pattern. These lines of data were merged to form high-resolution 3D bathymetric surveys of the underside of the ice.

The yellow SeaBED robot, which is approximately two meters long and weighs nearly 200 kilograms, has a twin-hull design that gives the robot enhanced stability for low-speed photographic surveys.

“Putting an AUV together to map the underside of sea ice is challenging from a software, navigation and acoustic communications standpoint,” says Hanumant Singh, an engineering scientist at the Woods Hole Oceanographic Institution (WHOI) whose lab designed, built and operated the AUV.

“SeaBED’s maneuverability and stability made it ideal for this application where we were doing detailed floe-scale mapping and deploying, as well as recovering in close-packed ice conditions. It would have been tough to do many of the missions we did, especially under the conditions we encountered, with some of the larger vehicles.”

Co-author Dr Guy Williams from Institute of Antarctic and Marine Studies, adds: “The full 3-D topography of the underside of the ice provides a richness of new information about the structure of sea ice and the processes that created it. This is key to advancing our models particularly in showing the differences between Arctic and Antarctic sea ice.”

The data from SeaBED, combined with airborne measurements of sea-ice surface elevation, ice coring surveys, and satellite observations, vastly improves scientists’ estimates of ice thickness and total sea ice volume.

Co-author, Dr Jeremy Wilkinson from British Antarctic Survey (BAS) says: “The AUV missions have given us a real insight into the nature of Antarctic sea ice – like looking through a microscope. We can now measure ice in far greater detail and were excited to measure ice up to 17 metres thick.”

The team deployed AUVs as part of two Antarctic cruises (IceBell and SIPEX-2) in 2010 and 2012 in the austral spring. First on the British Antarctic Survey’s RRS James Clark Ross and the second on the Australian icebreaker the RSV Aurora Australis. Three locations around the Antarctic Peninsula were mapped – the Weddell, Bellingshausen and Wilkes Land sectors covering an area of 500,000 square metres, the size of 100 football pitches.

The next steps are for the scientists to do large-scale surveys that can be compared to large-scale observations from aircraft and satellites.

“What this effort does is show that observations from AUVs under the ice are possible and there is a very rich data set that you can get from them,” says Ted Maksym, a WHOI scientist and co-author of the paper. “This work is an important step toward making the kinds of routine measurements we need in order to really monitor and understand what’s happening with the ice and the large scale changes that are occurring.”

The research was carried out by scientists at the Institute of Antarctic and Marine Studies (Australia), Antarctic Climate and Ecosystem Cooperative Research Centre (Australia), Woods Hole Oceanographic Institution (USA) and British Antarctic Survey (UK).

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North Sea Industry Calls for Tax Reform from UK Chancellor

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Ahead of next week’s Autumn Statement, the UK oil and gas industry has called for a major tax reform of the North Sea sector.

Citing its latest survey of oil and gas companies involved in the North Sea, Aberdeen & Grampian Chamber of Commerce (AGCC) said that there has been a sharp decline in confidence in the sector. Almost two-thirds of companies surveyed (62 percent) stated that they believe the government’s top priority with regard to the sector should be a revision to the fiscal regime to ensure it encourages exploration and extraction.

Respondents to the survey complained that “a sliding scale tax on mature, declining fields would extend the economic date for cessation of production”, so improving the investment case for development of mature fields, and that “if we don’t maintain or increase the level of exploration and extraction there will be no meaningful business in 20 years”.

The survey also showed that just 15 percent of firms are more confident about their UK Continental Shelf (UKCS) activity than a year ago, while 46 percent are less optimistic. The AGCC said that this showed confidence in North Sea activity is at a six-year low.

In a statement issued by AGCC Uisdean Vass, oil and gas partner at law firm Bond Dickinson (which sponsored the survey) commented:

“This survey provides a stark warning for the government. Confidence is at its lowest since 2008. Costs are making exploration and production in the UKCS, relative to other petroleum provinces worldwide, increasingly less economical, exacerbated by low oil prices and high tax rates ranging from 62 percent to 81 percent paid by producers in the UKCS.

“It is vital that a high level of activity is maintained in the North Sea because, as well as its direct importance for employment and the economy, it is a testing and training ground for personnel and technology which are exported around the globe. Not addressing problems now could mean thousands of jobs will be lost to Scotland in the years ahead.”

AGCC Research and Policy Director James Bream added:

“This year, we have seen a record survey response – that and the results highlight the critical situation in the North Sea. In a mature basin like the UKCS, the industry must cut costs, innovate and increase collaboration, but it cannot work in isolation of Government and a consistent, fair and stable tax regime is crucial.”

In a separate statement, business consulting firm EY also called for “bold reforms” to the North Sea fiscal regime. EY conceded that recent pronouncements by key government figures were “encouraging” but that it had identified a number of changes it believes are required to support the long-term competitiveness of the UKCS, including an immediate reduction in the tax rate.

“Virtually all new fields granted development consent since 2011 have benefited from some form of field allowance. This strongly suggests that the current headline rate is too high for the maturity of the basin,” Derek Leith, EY’s head of oil and gas taxation, said.

EY is also recommending the introduction of a single field allowance with basin-wide applicability, based on a percentage of all capital expenditure incurred, to simplify the numerous existing field allowances.

“Furthermore, we also suggest that the government considers reducing the rate of petroleum revenue tax to 0 percent to stimulate further investment in fields… and initiates changes to the capital allowances regime to encourage infrastructure transactions,” Leith added.

UK Chancellor of the Exchequer George Osborne is due to deliver the Autumn Statement on December 3.

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JFD Launches New SDV Unit in Sweden

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James Fisher Defence (JFD), the subsea operations and engineering company, has opened a new facility in Vaxholm, Sweden, JFD’s international base for the manufacture and maintenance of the company’s SEAL Pod range of Swimmer Delivery Vehicles (SDVs).

The new facility is the headquarters of JFD Sweden and includes over 800 square meters of manufacturing space, providing the scale and infrastructure required for the simultaneous assembly of multiple SDVs.

With a fully integrated design and manufacturing capability, designers and engineers are able to operate more effectively and efficiently throughout the manufacturing process, ensuring the highest safety and quality standards.

The layout of the new facility allows various manufacturing processes such as Glass Reinforced Plastic (GRP) handling, metal work, carpentry, hydraulics and electrical work to take place in isolation. An overpressure room allows safe handling of sensitive electrical equipment in a contamination free environment. On-site training facilities and ready access to the water front provides JFD’s customers with exceptional training, trials and demonstration opportunities.

“The new facility allows us to increase our manufacturing capacity and broaden the depth of our skills in order to meet a growing global demand for highly capable swimmer delivery vehicles,” said Fredrik Hillelson, Managing Director, JFD Sweden.

“Operating from this new facility enables JFD to continue to deliver the highest possible standards in capability, safety and quality, whilst also nurturing an environment committed to innovation, and ensuring that the customer is receiving the best possible products and services.”

Launched in 2013, JFD supplies SDVs for covert operations in markets including special forces, law enforcement, counter-terrorism, maritime protection and mine countermeasures.

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Oil, Gas Companies Adjust to Social Media, Multi-Generation Workers

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In simple terms, “social media has shifted the way we communicate with each other,” both socially, and at work, Crystal Washington – author, social media strategist and owner of CMW Enterprises – told those in attendance at the 5th Annual People in Energy Summit in Houston.

Over the next decade, a large number of workers from the Millennial generation, also known as Gen Y, will be moving into the energy industry. The new workers will be necessary in replacing retiring workers that come primarily from the Baby Boomer generation. As the new workers begin to make up a higher and higher percentage of all workers in the industry, it will be necessary for the industry to be flexible and open to the changes – including those brought about by social media – that will arrive with the influx of new workers.

There is a logical reason for the generational difference in social media and technology, Washington said. It’s not that Baby Boomers in the energy industry can’t use technology as well. However, people from that generation did not have to adapt to technology as quickly as subsequent generations, because new technology came out far more slowly than it now does. Baby Boomers were already adults before the technology boom came along. They were working and communicating without the use of smart phones and social media long before that technology was invented, and did not have to adapt as quickly.

And then things changed. In recent years, technology has moved very quickly in a short amount of time, forcing workers to quickly learn how to communicate in new ways, noted marriage and family therapist Sadia Jalali in a Houston Public Media interview. The rapidity of change has been the most difficult for generations used to technology moving at a slower pace.

However, despite the challenges of a multi-generational workplace, and the need to use rapidly changing social media and adapt to technological innovations, the energy industry could benefit from all of it by challenging new Gen Y workers to show, by the use of social media, how the workplace could be fun to potential new employees, and encouraging them to channel their energy back into the company, Washington said. That could be essential in getting the new workers that the energy industry will need in the coming years.

In short, Gen Y workers using social media could be an asset to the energy industry as it goes through a period of generational transition in the workplace.

As for the different generations learning to co-exist, that can be overcome, said Dr. Michael Winters, a Houston-based psychologist, in a Houston Public Media interview.

“The technology is the big thing that’s different. Each generation has to respect the communication styles of other generations. There is an etiquette to it, and digital natives understand it,” Winters said, adding that older generations have the most to learn about the communication styles commonly used in social media. 

Direct social recruiting is another way in which energy company hiring authorities can benefit from social media, Washington noted. In a recent study, 73 percent of hiring managers have hired workers via social recruiting.

In recent years, the culture of LinkedIn was business, and “the rules for engagement are the same as in-person,” Washington said. “If you have some type of group that will help people learn more about their industry, that is the thing that does well on LinkedIn.”

However, as new as social recruiting is, it is already changing. In a study of how people got jobs on social media, 18 million got on Facebook, 12 million got one on LinkedIn, and 10.2 million got one on Twitter, Washington said.

“You get jobs through those whom you know,” Washington noted, adding that Facebook’s culture was one of building relationships. Facebook Graph Search was designed to help users find the people, places and things they are looking for, and discovering new connections based on what others have shared.

“Social media does not replace face to face interactions. It does not replace phone calls. It does not replace handwritten notes. But it is a great way to touch in between real life interactions. It’s a shift in the way we communicate,” Washington said.

Washington touched briefly upon how social media came to be the preferred communication choice of many younger workers, noting that it couldn’t have become as pervasive as it is without the concurrent evolution of mobile phones into smart phones.

“Phones aren’t just phones anymore. Phones used to be just to call people, but phones and social media feed each other. Phones helped grow social media, and social media helped grow phones,” she said, adding that many people in the younger generations grew up with both, and “seem like they’re born knowing how to use this technology.”

Regarding social media at the office, “A lot of what you’re dealing with depends on the demographics at your organization,” Washington noted.

Generation Y workers do not mind making a mistake with communication technology. They grew up with it and know that the wrong keystroke is not going to break anything. Baby Boomers, by contrast, are not as comfortable making mistakes with technology. They also worry about the effects from miscommunication that social media could potentially cause.

Ultimately, a multi-generational energy industry workforce can be an asset. Young generations just have to learn to respect experience, and older generations have to learn the value of a fresh perspective, Winters said.

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Rights Sought for Seabed Mining Off Cornish Coast

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The Crown Estate has advised that it is considering awarding seabed rights to allow for the exploration of tin deposits off the coast of Cornwall.

Cornwall has a tin mining history which stretches back hundreds of years, with the last active mine closing in the late 1990s. Due to natural geological processes, tin deposits may exist under the seabed in locations and concentrations that could now potentially be commercially extracted.

The seabed rights that may be granted relate to exploration for tin deposits in a specific geographic area of the seabed off the south coast of Cornwall, in an area between Dodman Point and Lansallos, primarily around St Austell Bay.

The rights granted would not amount to permission to carry out extraction activity, which would require in addition to a lease, statutory consent from the Marine Management Organisation (MMO), including a full environmental impact assessment and public consultation.

Ian Selby, The Crown Estate’s Head of Minerals and Infrastructure, said: “At present, it is not known if there are tin deposits off the coast of Cornwall. The rights that may be granted by The Crown Estate on an exclusive basis would only enable exploration for tin in a specific geographic area. Should this exploration identify tin, permission would then need to be sought from The Crown Estate to carry out any extraction activity, alongside statutory consent from the relevant planning authority, and subject to appropriate public consultation.”

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Red7Marine Invests in ROVs

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Fast-growing offshore company Red7Marine Offshore has expanded its subsea services to North Sea clients by investing in a fleet of remotely operated vehicles (ROVs).

The eight observation class ROVs add a new strand to the portfolio offered by the ambitious marine offshore and subsea contractor.

The investment – part of a £25 million investment in equipment this year – also secures more skilled jobs at its Great Yarmouth base.

The ROV rental business was purchased from Forum Energy Technology, bringing jobs for supporting staff.

Chief executive Martin Myhill Sisley said: “This investment represents an exciting first step for us in an area of the business that we have already been working and one that we intend to grow with the likely addition of larger ROV systems in the near future.

“An in-house ROV capability along with Red7s’ diving experience strengthens the company’s already significant subsea expertise. This in turn enables us to provide our customers with best-fit solutions, be it from either our own fleet of vehicles or with a managed subcontractor offering larger work class ROV services.”

They are already working on ROV projects, supporting both the company’s diving operations and as stand-alone projects.

Lachlan Filshie, business development manager, said: “We will be growing our ROV business whilst continuing to provide standalone ROV services to our clients in addition to offering much wider turnkey vessel and subsea services.”

“Red7 Marine Offshore is dedicated to the local community providing skilled employment opportunities, whilst serving the needs of the growing offshore renewables and mature oil and gas markets.”

Earlier this month, the company announced the acquisition of a new saturation diving vessel, Red7 Alliance, launching its activity in saturation diving, leading to new on and offshore jobs.

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Saudi, Russia Pre-OPEC Talks Yield No Oil Output Cut

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Impromptu talks between Saudi Arabia, fellow OPEC member Venezuela and oil powers Russia and Mexico yielded no agreement on Tuesday on how to address a growing oil glut, ending without any plan to cut output despite a collapse in prices. In a day of shuttle diplomacy before OPEC’s output meeting in Vienna on Thursday, energy officials from non-members Russia and Mexico rushed to the Austrian capital to push OPEC kingpin Saudi Arabia on the 30 percent price fall since June.

Saudi has kept the market guessing about its response to crude’s fall amid rapidly rising U.S. shale output, but Tuesday’s talks had led to speculation in some quarters that Riyadh might back a coordinated cut involving non-OPEC members. Venezuelan Foreign Minister Rafael Ramirez told reporters after the talks that while all sides agreed current prices were “not good” for producing countries, no coordinated output cuts were arranged on Tuesday.

“We discussed the situation in the market, we shared our points of view, we need to keep in contact and we agreed to meet again in three months,” Ramirez, who until recently was oil minister and president of state oil company PDVSA, said. Venezuela, a noted price hawk, would try for an output agreement within OPEC on Thursday instead, he said. Oil prices turned lower after the talks, with international benchmark Brent falling more than $1 a barrel.

Igor Sechin, the head of Russian state oil company Rosneft and a close ally of President Vladimir Putin, arrived in Vienna on Tuesday amid hints that Moscow could cut output or exports if the producer group did the same. Russian Energy Minister Alexander Novak also attended the four-country meeting. “I’d like to highlight that current oil prices are not critical for us. We can postpone some capital-intensive projects,” Sechin told the meeting, according to a Rosneft statement.

“What is going to happen of course is that it (low prices) will have an impact on the global oil supply,” he said, apparently referring to a possible longer-term drop in output in countries where oil production is more expensive, including some projects in the United States.

Mexican Energy Minister Pedro Joaquin Coldwell left the meeting before the other participants, without giving a statement.

EYES TURN TO THURSDAY

Oil market watchers are divided on the outcome of OPEC’s Thursday meeting. Predictions range from a large production cut to revive prices, to a small reduction, or none at all. Current prices are far below what most OPEC members and rival producers such as Russia need to balance their budgets, but the group has struggled to adapt to growing supplies from the U.S. shale boom. Some analysts say an OPEC cut of as much as 1.5 million barrels per day (bpd) is needed to support oil prices and avoid increasing a supply glut in the first half of 2015.

Algerian Energy Minister Youcef Yousfi told the official APS news agency on Tuesday that OPEC would seek a “consensual step” to try to bring stability to the oil market, without giving further details. Diplomatic and market sources say Saudi officials told briefings in recent months that the kingdom, with its large currency reserves, was prepared to withstand oil prices as low as $70-$80 per barrel for up to a year.

Saudi Oil Minister Ali al-Naimi said earlier this month that Riyadh’s desire for stable markets had not changed but gave no clue about his potential response.

OVERSUPPLY

In Vienna on Monday and Tuesday, Naimi brushed off reporters’ questions about oil prices and surplus supplies. “This is not the first time the market is oversupplied,” he said. Naimi did not speak to reporters after Tuesday’s meeting. Russia’s Kommersant newspaper cited sources on Monday as saying Russia might suggest cutting its oil production by around 300,000 bpd from next year and that Moscow expected OPEC to limit its output by another 1.4 million bpd.

Moscow’s relations with OPEC were soured by the country’s pledge to cut output in tandem with the group in the early 2000s. Russia failed to follow through, and raised exports instead. Iranian news agency Shana said Putin and Iranian President Hassan Rouhani spoke by telephone on Monday evening and agreed “on necessary cooperation in favour of oil markets”.

The agency did not say where it acquired the information. On Monday, the Kremlin said the presidents discussed Iranian nuclear talks and bilateral issues and made no mention of oil. On Monday, Iran and six world powers agreed to yet another extension in the talks aimed at resolving a 12-year-old dispute over Tehran’s nuclear programme until June 30, 2015.

That makes any quick revival in Iran’s oil exports very unlikely and removes a potential layer of complication to this week’s OPEC meeting.

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Oceaneering Hires Island Pride

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Oceaneering has entered into a two-year charter for use of the Island Pride, a multi-service subsea support vessel owned by Island Offshore Shipping International.

The vessel is expected to be available for work in the U.S. Gulf of Mexico (GOM) in early January 2015.

Before it starts the work, the Island Pride is anticipated to undergo modifications to enhance its service capabilities, including reconfiguration to accommodate two Oceaneering high-specification, work class ROVs.

The vessel will also be equipped with a satellite communications system capable of transmitting streaming video for real-time work observation by shore personnel.

The Island Pride has an overall length of approximately 103 meters, a Class II dynamic positioning system, accommodations for 94 personnel, a helideck, a 150-ton active heave compensated crane, and a working moonpool.

The vessel is expected to be used for Oceaneering’s life-of-field and light construction services in the ultra-deep waters of the GOM and other international markets, depending on demand.  These services include performing inspection, maintenance, and repair (IMR) projects and hardware installations.  IMR projects are expected to include a wide range of subsea intervention tasks, including chemical well stimulation and hydrate remediation.  Hardware installations are expected to include umbilicals, subsea trees, flowline jumpers, and flying leads.

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Kemp: Oil in Arcadia

The State of New York produced just 1,000 barrels of oil per day in 2013, but consumed almost 620,000 barrels per day of refined fuels, according to the U.S. Energy Information Administration. Virtually every gallon of gasoline which New York motorists put into their cars, and the fuel oil used to heat their homes and offices through the long, cold winter, was refined from oil produced outside the state.

Some of that crude came from states such as North Dakota, Texas and Alaska, and the rest from foreign suppliers like Canada, Saudi Arabia, Venezuela and Nigeria. In common with other metropolitan areas, such as Washington, London or Paris, the lifestyle New Yorkers enjoy depends on oil and gas produced in other places and communities.

It is worth remembering that when sitting in a comfortable office in a big city reading about all the problems associated with oil and gas production. On Saturday, the New York Times published a carefully researched essay chronicling “The Downside of the Boom” about how “North Dakota took on the oversight of a multi-billion dollar oil industry with a regulatory system built on trust, warnings and second chances”.

It discusses in detail the accidents, blow outs and spillages which have accompanied the state’s oil boom, with interviews, data analysis and illustrations. The whole article is well worth reading but it tells only part of the story and ultimately fails to present a balanced picture of the costs and benefits associated with oil production.

RURAL POVERTY

Like many other articles published in the great metropolitan newspapers from New York, Washington and Los Angeles, it presents a picture of a rural Arcadia despoiled by careless oil and gas producers. The reality is rather different. For most of the last century, North Dakota has been a poor rural economy struggling to make a living from farming. Until the oil boom started around 2006, incomes in North Dakota had been far below the national average for most of the last 80 years.

During the late 1980s and throughout the 1990s, average personal income in North Dakota hovered at just 80-85 percent of the national level. By contrast, average incomes in New York were almost 50 percent higher at 120 percent of the national average, according to the U.S. Bureau of Economic Analysis (http://link.reuters.com/cyh53w). In 1995 the average per capita personal income in the United States stood at $23,500, but was $26,700 in New York and just $19,400 in North Dakota.

In 1995, North Dakota was ranked 42nd out of the 50 states in income per capita. Only Kentucky, Oklahoma, New Mexico, Utah, Montana, Arkansas, West Virginia and Mississippi were worse off. North Dakota’s average per capita personal income in 1995 was only $2,000 per year higher than Mississippi, the poorest state in the union. The oil boom has changed all that. By 2013, North Dakota’s average personal income ranked it 7th in the country. Only Connecticut, Massachusetts, New Jersey, New York and Maryland were better off. (See graphics: North Dakota income per capita and North Dakota rank in the United States)

COST AND BENEFIT

It is worth noting that with the exception of New York’s 1,000 barrels per day, none of those states produced any oil at all in 2013, according to the Energy Information Administration, despite consuming millions of barrels per day between them. Oil production has played a vital role in pulling North Dakota out of relative poverty and revitalising the state’s economy.

North Dakota’s shale oil, together with similar production in Texas, Oklahoma, New Mexico and Colorado, has brought the cost of driving and heating down for all American households. It is North Dakota’s oil that has reduced U.S. dependence on overseas supplies and given policymakers the freedom to pursue a more confident sanctions policy towards Iran.

And it is North Dakota’s oil that has lessened reliance on imports from countries with poor records on human rights and environmental safeguards. None of this is meant to excuse spillages, blow outs and pollution, or suggest the industry, regulators and politicians should not pursue constant improvements. But it is important to keep pollution problems in perspective. Every economic activity entails some risks. The point is to manage them.

Hazards are not restricted to oil and gas. Few commentators like to acknowledge the pollution associated with producing the rare earth elements essential to much modern clean technology. Nor are the hazards restricted to shale. Far more pollution has been caused by conventional onshore and offshore production over the decades. North Dakota’s track record on pollution control and safety is considerably better than alternative sources of U.S. fuels such as Nigeria or Venezuela.

The Times article implies North Dakota’s politicians and regulators were not up to the job and should have pursued a more aggressive and confrontational approach with oil producers. However, that is both unfair and unrealistic. Adopting the sort of zero-risk, zero-tolerance approach which the Times advocates would have ensured the shale boom never happened.

New York still has some of the highest gasoline prices in the country. But thanks in large part to North Dakota’s shale oil, New York motorists can now fill up at around $3.30 per gallon versus the $4.30 they were paying in the summer of 2008. Thanks in large part to North Dakota’s shale, the average U.S. household saves more than $2,000 per year on fuel as a result of the recent drop in oil prices.

Journalists are instinctively sceptical about the oil and gas industry, and petroleum producers repay that with open hostility towards the “liberal” metropolitan media. The challenge for both sides, but especially the media, is to reach a more balanced and nuanced understanding of energy production, which takes account of all the benefits as well as the price which is paid, and realises there are no risk-free options.

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